The Euro opened the week slightly higher after ending last Friday’s session lower, and having advanced last week to the highest level in three years against the Dollar.
The Euro is also being affected by the speculation that the ECB is on track to withdraw Monetary Stimulus and tighten Monetary Policy, narrowing the gap between it and the Federal Reserve.
Technical reading shows that prices are still moving within a negative correction to the general upside. The support levels at 1.2400 and 1.2380 remain the most important short-term levels and the pair’s strength above these levels will restore the confidence of the buyers. However, any change in trend over the short term will positively affect the movement of prices.
The US Dollar rose slightly against the Japanese Yen on Monday as Asian Stocks rose to complement the recovery, after the sharp drop in global equities during the open sell-off triggered by interest rate hikes the previous week.
Technical reading shows that the USDJPY pair is trying to absorb the recent selling pressures that the pair is facing. With no clear signals of change in the overall bearish trend, if the pair breaches the resistance levels of 106.40, the breach would allow the market to correct toward the upside and perhaps test the second resistance level at 106.80. A break of the support level at 106.30 would establish a downward trend.
Technical reading shows that GBPUSD prices are trying to catch a breath after the recent strong rally. With no signs of a general upward trend change, a break of support levels at 1.4030 would allow prices to retreat further and may likely test 1.3990 levels. On the other hand, a breach of near resistance levels at 1.4050 would invite buyers to enter the market and possibly test 1.4080 levels.
Gold advanced on Monday after having retreated last Friday, and also attaining a record-high in the last three weeks. The precious metal is trading weak due to holiday in many financial markets, which is causing a general reduction in the volume of trading in the markets.
However, the current recovery in global stock markets could limit the gains of Gold, which is a safe haven and alternative investment to stock markets, as stocks continue to make gains to compensate for the large losses recorded during the open sell-off in the global stock markets last week.
Technical reading shows that prices are trying to catch a breath after the recent strong rally. With no signs of a general upward trend change, a break of support levels at 1344 would allow prices to fall further and may test 1340 levels. At the same time, a breach of near resistance levels at 1350 will invite buyers to enter the market and possibly test the levels of 1355